Research on the Risk of Structural Wealth Management Products Based on VaR

Abstract

In recent years, with the rapid development of the domestic economy, the wealth management products of Chinese banks have become increasingly mature and strong, with a history of 17 years since their development in 2003. Especially with the implementation of the "New Asset Regulations" in 2018, breakeven wealth management officially became history, and the wealth management market underwent continuous changes. Under the influence of this new regulation, major financial institutions have transformed one after another, and banks are attempting to break the shackles of traditional bank wealth management products and launch innovative products. Among them, structured wealth management products, with their advantages of controllable returns and risks, have increasingly become the new darling of the bank wealth management industry. This article analyzes a structured wealth management product called "Golden Key • Ruyi", which is issued by the Agricultural Bank of China. This article takes relevant theories as the starting point, analyzes the internal aspects of the product, and ultimately proposes relevant safeguard measures based on the problems identified in the analysis.